If you have been having doubts about investing your hard-earned money on a house, 2016 is the perfect time to finally make an investment. Experts have given some real estate tips you may want to consider.
For a while now, mortgage rents have been moving up and down. They are predicted to start going up but despite this, you still have a chance to get a good deal on a house. You may not be aware, but a number of factors are coming together to make 2016 a great time to make a wise purchase.
Real estate values are expected to slow their pace next year. According to Zillow's Chief Economist Svenja Gudell, prices are expected to make a 3.5 percent increase. This slowdown can lead to a flood of buyers. Realtor.com Chief Economist Jonathan Smoke is predicting that six million home sales will be made through the months of April to September.
Likewise, the price appreciation will urge more home owners to list their homes giving buyers more properties to choose from. Recently, builders have been focusing on building starter and middle-range homes. This move boosts the inventory of the home market giving buyers a great advantage. With more homes, bidding wars will become uncommon and prices could ease down.
However, not everyone can take advantage of this situation. Zillow still expects prices to outpace wage growth making it difficult for lower-income buyers to acquire a home. Also, prices in the country's hottest real estate markets such as San Francisco, Boston and New York City aren't expected to experience a slowdown in real estate values.
Aside from the slowdown, the Federal Reserve is also expected to begin increasing interest rates soon. This means, the window for low mortgage rates is already closing.
Smoke said, "You are likely to get the best rate you will possibly see, perhaps in your lifetimes through the majority of next year, but certainly, the earlier the better."
Rent prices are also expected to continue increasing in 2016. People who are planning to rent out units are advised to purchase homes instead to save money.